Wisconsin Herd’s lease agreement runs until 2026 but a source revealed the team has opt-out provisions that could release them

OSHKOSH — The Wisconsin Herd may be looking for a new home.

Oshkosh could be in danger of losing the Milwaukee Bucks’ NBA G League team, as an inside source revealed the Herd “no longer wants to work” with Oshkosh Arena owner Fox Valley Pro Basketball Inc. after claiming it’s in violation of its current lease.

It’s not exactly certain how Fox Valley Pro Basketball Inc. is suspected to be in breach of the lease agreement, which runs to 2026, but the source explained the Herd has opt-out provisions that could release the team from that lease.

Efforts to contact officials from the Herd and its managing company, Future Bucks LLC, proved unsuccessful while Fox Valley Pro Basketball Managing Partner Greg Pierce declined comment.

News of the NBA G League team’s possible departure comes two months after Oshkosh Arena was listed for sale following a tumultuous seven-year stretch that has seen the owners file for bankruptcy while facing litigation.

Reports indicate the Herd is willing to stay in Oshkosh to work with new arena ownership, but that would depend on the timing of the sale.

Herd’s impact in Oshkosh: Wisconsin Herd, Oshkosh tout benefits of their relationship: ‘It puts Oshkosh on the map’

The Herd will have to finalize its home court arrangements before the G League schedule releases in early September.

The Herd likely has until August to nail down home court arrangements for the 2024-25 season, considering the NBA releases its G League schedule in early September.

But the sale of Oshkosh Arena may take longer than expected, as any deal would be contingent on Fox Valley Pro Basketball Inc. settling its current tax arrears with the City of Oshkosh.

According to the city’s finance department, the Oshkosh Arena owners currently owe more than $619,000 in combined personal property and real estate taxes.

It’s just the latest in a long series of financial struggles for Fox Valley Pro Basketball Inc. since it first built the arena to attract the Herd to Oshkosh in 2017.

The general contractor for what was then the Menominee Nation Arena sued the arena owners for an outstanding debt of $21.5 million in 2019 before Fox Valley Pro Basketball filed for bankruptcy, reporting more than 100 creditors.

Fox Valley Pro Basketball Inc. eventually reached settlements with the creditors, including the city of Oshkosh and the Herd, in 2020 before employees were locked out of the arena three years later as a result of fire code violations.

FVPB Managing Partner Greg Pierce says the plan was always to own Oshkosh Arena for seven to 10 years.

But Pierce told the Northwestern the arena’s listing has nothing to do with its financial challenges, as the initial plan was always to own the building for a seven- to 10-year period.

“We hired a consultant to market it and test the waters to see what we can get for it, and so far we have several groups looking at the building,” Pierce said in an interview with the Northwestern.

“If there’s nothing reasonable in terms of offers, then we continue on with the arena.”

The arena is listed on LoopNet as an 80,000-square-foot sports and entertainment building at 1212 S. Main St. without a price attached.

Young American Capital, SFR Realty and Main Line Executive Realty have been retained to manage the sale.

The listing also says the Oak View Group will manage the facility for the next 10 years while revenue is projected at $8 million next year as a result of sponsorship and booked events.

But that figure stands to take a significant blow if the Herd is no longer a tenant of the arena.

Oshkosh Chamber CEO Rob Kleman estimates each Herd home game generates $100,000 of economic impact in Oshkosh.

The City of Oshkosh would likely feel the pinch as well, as Oshkosh Chamber President/CEO Rob Kleman estimates each Herd home game generates about $100,000 of economic impact in the area.

The arena seats more than 4,000 people and the Herd averaged 87% capacity crowds in 24 home games during the 2022-23 season while selling out 11 of those contests.

According to team President Steve Brandes, the Herd also donated $277,000 to charitable causes that season.

And these are figures not lost on Oshkosh City Manager Mark Rohloff.

“We can’t take them for granted, so I’m working to make sure that they never leave,” Rohloff said when asked about the Herd’s impact on Oshkosh.

“I think they’re important to the community and I think they’re important to the success of the arena because the example I use is that of a mall — you need good anchors in the mall, and the Herd represents a credible anchor for the arena and that’s what perspective buyers will be looking at.”

Oshkosh beat out bids from La Crosse, Racine, Sheboygan and Grand Chute to become the home city for the Milwaukee Bucks’ G League team back in 2017.

And the Herd appeared entrenched in Oshkosh for the foreseeable future after signing a multi-year extension of their lease in 2022 that would see the team remain in Oshkosh Arena through to 2026 with a further option to extend until 2028.

Lease extension: Wisconsin Herd, the Milwaukee Bucks’ NBA G League team, extends lease with Oshkosh Arena

Milwaukee may not be obligated to keep its G League team in Wisconsin, either, as the Denver Nuggets (Grand Rapids Gold), Minnesota Timberwolves (Iowa Wolves) and Miami Heat (Sioux Falls Skyforce) all have their affiliates in outside states.  

The Phoenix Suns don’t have a G League team.

Have a story tip or public interest concern? Contact Justin Marville at jmarville@gannett.com.